Debt Collection Act of 1981

Debt Collection Act of 1981 - Amends the Privacy Act of 1974 to permit a Federal agency to disclose individual records to a consumer reporting agency.

Authorizes a Federal agency attempting to collect a claim under the Federal Claims Collection Act of 1966 to notify a consumer reporting agency that a person is responsible for a claim if: (1) the agency has sent a written notice informing the person that a consumer reporting agency will be contacted, describing the information to be disclosed, and explaining the person's right to dispute the agency's claim; (2) the person has not agreed to repay the claim or filed for review of the claim; (3) the agency, upon request, has reviewed the claim; and (4) the agency has obtained assurances that the consumer reporting agency complies with Federal laws governing the provision of consumer credit information. Requires the agency to notify the consumer reporting agency promptly concerning any change in the status or amount of the claim.

Directs Federal agencies to require any individual applying for credit or financial assistance which may result in indebtedness to the Government to furnish his or her social security numbers.

Authorizes an agency (including the United States Postal Service) to deduct installment payments from the pay of an employee or member of the Armed Forces or Armed Forces Reserve to offset any debts owed the Government. Limits the amount deducted to 25 percent of the individual's disposable pay.

Makes murder or manslaughter of a Federal debt collector a Federal offense.

Authorizes the Secretary of the Treasury to disclose to a Federal agency: (1) information concerning the tax liability of a Federal loan applicant; and (2) the mailing address of a taxpayer for use in collecting a claim against such taxpayer.

Increases the rate of interest on delinquent taxes to 100 percent (currently 90 percent) of the prime rate quoted by commercial banks to large businesses. Permits the annual (currently biennial) adjustment of such interest rate.

Allows the Government to collect claims by administrative offset beyond the six year statute of limitations on actions brought by the Government for money damages.

Amends the Federal Claims Collection Act of 1966 to direct each agency to charge a minimum annual rate of interest on outstanding debts and to assess a penalty charge and handling costs on delinquent claims, except where another statute, statutorily mandated regulation, loan agreement, or contract either prohibits or explicitly fixes interest or penalty charges.

Declares that service of legal process brought for the collection of United States claims shall be accomplished in accordance with the Federal Rules of Civil Procedure or as directed by the court.

Requires the Director of the Office of Management and Budget to: (1) direct each agency with outstanding debts to submit to the Director and the Department of the Treasury an annual report on the status of the agency's loans and accounts receivable; and (2) report to the Congress annually on the management of agency debt collection activities.